KEY TAKEAWAYS

  • Mortgage rates in 2023 reached their highest levels in 23 years as lofty interest rates pushed homeownership out of reach for more Americans.
  • Student loan repayments resumed in October as President Joe Biden unveiled a new repayment program after forgiveness was struck down by the Supreme Court.
  • The IRS again delayed a tax rule for online marketplace sales, ticket sales, and transactions requiring a 1099-K form.
  • Inflation began to slow in the second half of the year, but gas prices kept readings high, and consumers remained uncertain about where prices were heading.
  • A spate of banking failures in the spring had consumers worrying whether the financial system could collapse and if their bank deposits were safe.

From bank failures to high mortgage rates to student loan repayments, there were plenty of stories in 2023 that affected people’s wallets. After the Federal Reserve raised interest rates to their highest levels in 22 years, inflation began to slow some in 2023, but consumers said that the run-up in prices remained a top concern.

One thing consumers had on their mind was mortgage rates, which reached 23-year highs, while others had a resumption of student loan repayments to worry about. However, the Internal Revenue Service (IRS) did give some taxpayers a break when it delayed a new tax on online sales that will affect online vendors, ticket sellers, and people who perform other online transactions.

Here are some of the personal finance stories that had the biggest impact on consumers in 2023.

Mortgage Rates Hit 23-Year High

Anyone in the housing market in 2023 knows the impact that rising mortgage rates have had on the real estate industry. The effect of rapidly increasing mortgage rates on the market was widespread, from buyers being priced out of the market to potential sellers holding onto properties they purchased with favorable rates, squeezing housing inventory.

Mortgage rates first surged above 8% in late September, the highest levels in 23 years. Rates lingered around that 8% mark for most of October before beginning a descent in mid-November. As the Federal Reserve continued its campaign to raise interest rates in 2023—enacting four hikes over the year—mortgage rates followed. Starting at about 6.5% to open the year, the average mortgage rate has risen almost 1.5 percentage points since then. It has more than doubled since the start of 2022.